3.
9.
10.
Exhibit 21-3
Marginal Physical Total
Total
Variable Fixed
Product of
Variable Input
Input Input
Fixed
Cost
Variable Marginal
Cost
Cost
Output
(units) (units) (units)
(units)
(dollars) (dollars) (dollars)
0
1
0
$500
$0
1
1
10
(A)
$500
$200
(E)
2
1
25
(B)
$500
$400
(G)
3
1
45
(C)
$500
$600
(H)
4
1
60
(D)
$500
$800
(I)
5
1
70
(E)
$500
$1000
(J)
Refer to Exhibit 21-3. The total cost of producing 45 units of output is
a. $1,100.
b. $1,050.
c. $900.
d. $1,000.
e. $950.
